Apple Settles Lawsuit Using iTunes Currency

The good news for parents who sued Apple over what they claimed were hidden charges in children's game apps is that Apple agreed to settle the class action suit. However, in place of cold, hard cash, qualified class members who spent less than $30 will receive $5 in iTunes store credit (those who spent more can request a cash refund).

"The proposed settlement eliminates the risks of continued litigation, including the risk of no recovery from Apple. It immediately provides the certainty of valuable benefits to the class members," the motion to approve the settlement said, according to Law360. "If this case is not settled, it would be necessary to continue prosecuting the litigation against Apple through class certification, trial and appeal."

Even though it's essentially faux currency on Apple's part, the credits add up when you factor in the more than 23 million iTunes account holders who qualify. In addition, Apple will pay $1.3 million to class counsel Saltz Mongeluzzi Barrett & Bendesky PC and Boni & Zack LLC, the real winners in all of this.

The proposed settlement comes after parents sued Apple in 2011 after discovering that kids were able to rack up significant in-app charges from games that could be downloaded for free. Plaintiffs contended that Apple failed to adequately disclose that third-party apps contained the ability to make in-app purchases.